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Inventory Recording: Tips for Efficient Inventory Recording

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Inventory Recording: Tips for Efficient Inventory Recording

Inventory warehouses are used by numerous businesses. A company's success depends on its warehouse or storage, especially if it engages in trading.

Because you can manage stock clearly with inventory management according to the king and age of the goods in the warehouse.

All business players must comprehend an efficient inventory management plan. 

What is Inventory Management

Companies keep inventory for a variety of reasons, including anticipating demand, separating the production and distribution processes, taking advantage of quantity discounts, avoiding inflation and price changes, and avoiding running out of products due to inclement weather, supplier shortages, issues with quality, or deliveries of non-conforming goods.

Inventory management is a process used to estimate, watch over, and stop events from happening to warehouse goods. To achieve the company's aims and keep it competitive in the market, inventory management operations also involve planning and regulating inventory.

Along with information and cash flow, inventory management is a critical component of logistics and supply chain management.

By determining the quantity and timing of purchases so that total costs are as low as possible on the current planning horizon, inventory management helps businesses boost their profitability while also observing the effects of corporate policies on inventory levels.

Cutting inventory costs or increasing sales volume are two ways to boost a company's profitability.

The Importance of Understanding Inventory Management

A business must be able to guarantee that there is always stock on hand. The inventory may be on the sales shelf or in the warehouse. because it might pique the curiosity of potential customers in the goods. And the amount of goods wasted can be reduced.

The following are some advantages of comprehending this inventory management:

1. Increase customer satisfaction

Good inventory management allows customer needs to be met every time they want to buy goods. This will certainly increase customer satisfaction which leads to a better reputation of the seller in the eyes of the customer.

2. Reduce and prevent the risk of loss of raw materials and goods needed by the company

Most of the company's capital will be embedded in raw materials or inventory so that the control process is needed to prevent and reduce the risk of losing raw materials. The existence of sufficient inventory in the warehouse due to proper control of course makes the company easy in the production process.

3. Prevent the risk of delays in delivery of goods

Delay in delivery of goods to consumers is something that must be avoided by sellers. This can be overcome by calculating the stock of goods accurately, so that goods can be sent immediately after ordering.

4. Prevent inflation or increase in goods

Inventories in the warehouse can prevent inflation or an increase in raw material prices. So when raw materials experience a rapid increase, companies no longer bother to buy raw materials.

5. Maintain inventory on the market

With inventory management, the seller can determine exactly how much stock should be provided. So the seller will not lose the opportunity to profit from market demand.

6. Prevent if the ordered goods are not good so that the company can return the goods

Sometimes the company procures a lot of goods and often the goods ordered are not in accordance with the request. Because the production process cannot be delayed, the availability of inventory will help companies that lack materials due to returning some raw materials because they are not on demand.

Problems That Can Occur Due To Not Doing Inventory Management


Given the significance of the advantages of inventory management, there are occasionally issues that business owners typically face if they handle inventory improperly. 

The following are a few issues that could arise throughout the inventory management process:

1. Many expired products

If you sell products that expire easily, such as food, drinks, snacks, or makeup, you definitely can't sell everything on time. Because there will be times when the product is not sold until it exceeds its expiration date. 

If it is already in the expired category, there is only one thing that can be done, namely to dispose of the product. Of course, it will make a loss so that the profit (profit) obtained is not as maximal as usual.

2. Experiencing deadstock

In addition to expiration and stale, without inventory management, companies can experience dead stock. Dead stock are products that are no longer used or are no longer used so that they are not sold in the market. The product will be called 'dead stock' if it is no longer needed by the customer. It could be that these products are not getting interest because they are out of date.

3. There will be product shrinkage

The last problem that often plagues business owners is product shrinkage. In accounting, this is a situation where the list of products listed in the books is not the same as the actual stock in the warehouse. The greater the depreciation will be directly proportional to the losses that will be experienced by a business owner.

Inventory Management Strategy

Stock management is crucial for businesses, especially those involved in retail or trading. In this situation, inventory management must be done as effectively as possible. You might begin with a straightforward approach in order to learn how to manage it professionally. 

Here are some pointers for handling firm inventory management:

1. Establish a good inventory recording and projection system

The first crucial point to remember is to establish an inventory keeping system. Later on, with careful calculations, you may predict how many goods are required. Don't allow the inventory to be more or less harmful to the business. 

The business will then be able to calculate the minimum amount of merchandise that should be kept in the warehouse as a benchmark. Additionally, develop an inventory system by keeping track of things that are coming in and going out, as well as when it is appropriate to issue or add stock.

2. Pay attention to Cash Flow

Funds in and out are the most important things in the business process in the company. Thus, cashflow must be considered carefully and determine the best strategy to make turnover greater or at least equal to the total business costs.

3. Check the goods periodically

Loss or damage are two things that sellers really avoid. To overcome this, it is necessary to carry out periodic inspection of goods in the warehouse. Make sure the availability of goods is in accordance with existing reports, so that the amount of stock that has been recorded does not decrease.

4. Differentiate goods by type and status of goods

Distinguishing goods based on the type and status of goods is done so that goods do not mix with one another. This can also make it easier to find items that are needed at any time.

5. Use inventory recording system for easy checking

It is obvious that precision, foresight, and accuracy are required while conducting an inventory audit. If done manually, this will take a lot of time and money. Therefore, it is essential to employ an inventory keeping system that has a number of functions to help the business. 

For instance, inventory optimization, which aids in automatically estimating demand, order management, service management, asset monitoring to track products in the warehouse using a barcode system, and asset tracking.


A production manager in a company must carry out inventory management. And it is very necessary to check the purchased goods or before procuring the goods so that the goods can be sold, without throwing away too many goods that are not suitable for sale. So that it can increase the company's profits.

Now when the company makes a profit, there are other things that must be done, namely financial management. 

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